tv Your Bottom Line CNN August 14, 2010 9:30am-10:00am EDT
no doubt about it, getting a mortgage is tough these days. we'll tell you about some new red flags that could keep from you that home loan you need. we're three months away from open enrollment but we have what you need to know right now about the new cost of your health care. and parents, rejoice. we're talking back-to-school savings. get your kids ready for the classroom without breaking the bank. the show that saves you money starts right now.
applying for a mortgage is no fun. it is a lot of pressure. you have to worry about your credit score, your entire financial background and some stuff may just be out of your control. there are little-known reasons why you might be denied. here to shed some light on them, good friend of the show carmen wong ulrich. thank you so much for being here. >> thanks for having me. >> talk a little bit about something that i think would be pretty controversial. could someone actually be denied because they're expecting a baby? >> yes, you can. here's why. if you earn income, especially if you're the primary breadwinner for the home, more an more common these days, if you're pregnant, if you're expecting a child and you go on maternity leave. when you go to buy the home, it takes a couple months to actually go through the financial process. so you may not be on maternity leave then. you may get approved but now lenders are required just before you close to check again and make sure you have that income. if you go on for example disability, they check with your
employer. your employer is not supposed to say she's pregnant, she's having a child. that's against the law. what they can do is see that you're on disability or on maternity leave when they look at your paperwork. if they see that, they get nervous and they will shut you down. >> talk about independent contractors. that's another situation where if you are working for yourself, this could be a difficult process of getting a mortgage. >> absolutely. been there, done that. more and more of us are becoming independent contractors, not getting hired full time with benefits so your income is not the same month to month to month. you may not even have contracts that show the underemployment for a year's time or such so banks get very, very skittish about having income that's not going to be very regular. what you can do is you can try to get the folks that you work with to have letters that say this person's going to write for us for this year. if you don't have a contract, just anything that assures them you'll have this income going for a while. >> let's say if you have a job, everything is fine there, but the housing market has affected your neighborhood. what could that mean for you
then? >> you know the housing market has dropped quite far. some markets are continuing to drop. so if you're looking at putting 10% down or 20% down and a lender gets skittish because it's drop even some more, they may want another 5% deposit in order to ensure your mortgage. you've got to look at where you're buying, look at not just your income where how is the housing market behaving where you are. if it is continuing to go home, they may come back at you three months later when you close and say we need more money. >> and 5%. >> that is a lot of cash. absolutely. >> what about refinancing? what road blocks will people encounter for that? >> all of the above. refinance something buying your home all over again. what helps you is if you have a lot of equity in the home. if you have substantial equity in the home, over 30%, the odds are even if you go on maternity leave you can still get through the re-fi or they'll still be very strict about proving that you have stable income. >> get the information to back it up, then sfee that will help
you out. maybe you have fob a little more patient. carmen, thanks as always for the information. good stuff there. now to an even darker side of mortgages. foreclosures. queens has been called ground zero of the new york foreclosure crisis and the community of jamaica there is saddled with the nation's highest concentration of mortgage fraud. four times worse than the national average. but understanding the problem is really half the battle. as we discovered when we visited a free foreclosure rescue fair. >> we want you when you leave here to know what you need to know to save your home. >> good afternoon, sir. if you give me this, you will get the modification. i show him all the paperwork and still don't get the modification. >> i hope you have all your documentation so that they can do everything they can to assist you. and even if you've been frustrated before in the past, please be patient because the
bank'sob again is to make it frustrating. >> i have sleepless nights over it. wake up in the night, i can't go back to sleep. >> we have translators here for people who need translation in every major language in the city and we also have other counselors that are here that can help people with going through the process. >> he has been trying to work with the bank on and off but i think it's been a lot of miscommunication because he doesn't know the language too well and he speaks to different people. sometimes you don't know what direction to go. >> we decided modification for him which was declined so we are in the process of resubmitting. people are not able to talk to the lender. when they call them, a lot of time they really don't understand exactly what is going
on. they are unable to express themselves, unable to explain their needs. >> because of the language barriers, a lot of people in immigrant communities haven't had access to the same kind of information about what some of the modifications are available to them and so they -- the only people who are offering assistance are the people who are the scammers. the scammers are really great at being able to provide information in language. >> it is unfortunate and it happens a lot, but just don't do it again. how much did you give them? >> $3,000. >> 3,000? >> of all the people who were helping to perpetuate the bad loans are now perpetuating the bad rescue scams. they're targeting individual owners and families that are vulnerable. they might be seniors, they might be immigrants, they might be women who aren't necessarily aware of all the legalities of a mortgage. >> these are foreclosure rescue scam artists and they don't deliver the services.
they collect the fees and run off with the money. now what they generally will tell you is don't call the bank, we've got your file. so that's because you won't call the bank to understand that they stole the money. so just don't do that anymore and you're okay. >> this 13, 14 years now and i have done so much to it. you know? and for me to lose it, that would be a terrible thing. that would be a terrible thing to me. >> 760 households were served by that rescue fair. if you want to find a hud-approved housing counselor in your area, logon to makinghomeaffordable.gov or call 1-888-995-hope. maybe you've heard the term grandfathered in, but done know exactly what it means for the cost of your health care in the future. we'll explain it to you in 90 seconds.
time for a glimpse into your health care future. benefits open enrollment isn't going to take place at your job until the fall but we have some things to think about right mao when it comes to your health and bottom line in 2011. andrew ruben is the vice president of nyu's medical center and the host of health care connect on sirius xm radio. thanks for being here. can you explain to us why it is important to understand the idea
of grandfathering in when it comes to health care? >> so remember president obama when his one health care reform passed talked about people if you like your insurance you can keep it? that's what this is all about. large group plans are exempt from many of the new provisions that we're hearing about in the news that are kicking in over the next few months. basically if your plan is from your employer and you work for a large employer, it is highly likely many benefits that we're reading about now won't apply to you yet. >> that's something you really need to know. let's take a look at some of the things. let's say you are grandfathered in. how is this going to affect say your preventive care? >> so for preventive care, remember screenings for example, they actually -- we're no longer going to have co-pays or co-insurance for mammogram or colonoscopies. if you're in a grandfathered plan and you get charge a co-pay, they still get to do that. it's complicated stuff. >> it is. some people when it comes to choosing the doctor that they want, it is not going to be
unrestricted if you're grandfathered in. >> if you go to a pediatrician as your primary care provider, you no longer need a referral if you're in a an hmo plan. if your plan is grandfathered in, you still need to seed your primary care physician to get the referral to see your op stigs or pediatrician. >> that's an extra step you don't want to take. especially in new york city. >> that's why they got rid of it. >> talk about imagine care. >> this is a big one. a lot of people go to an emergency room and they think that's in network because the hospital is in network. then they come home and find out that the doctor who saw them in the emergency room is out of network and they have this huge out-of-network bills. under health care reform, essentially the intent is to try and not penalize the patient for going to an in-network emergency room and getting an out-of-network doctor bill. under health care reform that gets fixed. if you're in a grandfathered plan the old rules still apply and the doctor can continue to bill you at that high penalty. >> if you have an emergency the
best you can do is go to the right place. so not to know which doctor -- >> that's a tricky one. we get a lot of complaints on the radio show people who went to the emergency room thinking they did the right thing, then end up with big bills. >> parents probably care about this one. you may have your child off to college getting their grad degree and they're not 26 yet. do you keep them on their insurance? >> everybody likes keeping their dependent children on their insurance plan until they're age 26. but under a grandfathered plan if your child has an option to get health care insurance from their own employer you can't bring them on to your own policy. no matter what. even if your child can't afford the insurance being offered through their own employer, they still can't go on the policy. >> that's important to note. andrew, thanks for being here. can you believe? it is back-to-school shopping time. don't whip out your cash just yet. up next what you need to know before you start loading up your shopping cart.
over the next few weeks on the show that saves you money, we're going to help you do just that when it comes to sending your kids back to school. the average family is expected to spend more than 600 bucks -- $600! on back-to-school goodies this year. here now to help us save some of this money, janet bodnar joining us from washington today. let's talk about this. before you go ahead and hit the mall, what do you need to do? >> first trip is to go to the kid's closet and find out what you got from last year that still works. because -- you're doing that for your own closet, too. everyone is a little bit thif thrifty. for the kids it is a good lesson between needs and wants. they may want a whole new wardrobe but they may not need a whole new wardrobe. having them make those decisions is helpful to them and to you. >> you can make spice to get the new stuff in there. >> for every new thing that goes
in, an old thing has to come out. >> you talk a bit about lists and you talk a bit about budget. you say both things are really important. >> well, yeah. i think especially with kid. again, if you're spending $600 divided over all the kids in the how many, how many is going to jeans, how much is going to tops, school supplies, that short of thing. if you share this with your kids, as they get older, they can make decisions on what they want to spend their money on. maybe you'll spend $200 of that on your high school kid. you say to the high school kid, this is what you have to spend. make some decisions on how you wan to spend it. that will wake them up. when they have to make the decisions it is a whole different thing. but a great learning experience for them. >> mom, please? dad, come on, please? >> oh, yeah. >> i may have been guilty of that. my child's too young to do that to me just question the but i think i may have done that once or twice. >> you'll get yours.
>> i'll get mine now. what about the timing of those sales? you don't want to miss the sales when you go out to do the shopping. how do you time it just right? >> first of all, looks like what retailers do is in august that's when they tend to put school supplies on sale. come labor day, then you may fine more sales on school clothing and that sort of thing. plus there are about 16 states -- you can fine them on our website, kiplinger.com, that actually have sales tax holidays on back-to-school equipment, anything from school supplies to computers to clothes, that sort of thing. if your state's one of them, you can really benefit from that. that's on our website, kiplinger.com. >> talking about websites, what about if you do your shopping on websites? another thing you can do -- aside from looking -- shopping at the right times and looking for the sales tax holidays, you can ask for e-mail alerts or twitter alerts, that will give you alerts from stores have their own sales so retailers can notify you if you get on their list that you can take advantage
of that. plus, there are a lot of sites online that will give you coupons. retailmenot is one we at kiplinger recommend a lot. others will give you coupons for certain back-to-school products. again if you sign up for those you can get the coupons, get the product code, and that sort of thing, do your shopping online. maybe fewer temptations than when you stand actually in the middle of the store and you want to buy everything in sight or your kids want to buy everything in sight. if you can control it a little bit better plus get some money off with coupons. >> not a bad idea. maybe buy in bulk a little bit, too. janet bodnar, thanks for breaking it down. that free app you just downloaded to your iphone, blackberry or droid might actually and threat to you. we'll explain next. imagine if it were this easy to spot the good guys.
well, it is. just get the superpagesmobile app on your phone. and look for a business with the superguarantee®. you'll get the job done right, or we'll step in and help make it right. so, protect yourself. use your phone to find a business with the superguarantee®. only from superpages.com®. and let the good guys come to the rescue. time to face the pollen that used to make me sneeze... my eyes water. but now zyrtec®, the fastest 24-hour allergy relief, comes in a new liquid gel. new zyrtec® liquid gels work fast, so i can love the air®. there's an app for that. how many times have you heard that one? it's really true, whether you have an iphone, a blackberry or a droid, there are hundreds of thousands of apps to choose from. but you need to watch out for downloadable programs and
applications that thieves may use to steal your info. so we've got help for you today. sasha seeingen is a lead mobile analyst for qpc.com." there are still a lot of apps for all the phones, right? >> absolutely. the iphone has the most apps, they're going on a quarter million right now. but android is coming up fast, you know they're approaching the 100,000 mark. then you have, you know, a lot fewer apps for blackberry, windows mobile, palm, but they each still have thousands of apps. you're likely to find at least a couple dozen that you like. >> at least one, two, or 20. >> absolutely. >> let's talk a little bit about this. because when you look at this, who is really vetting these apps out there? >> it depends on the phone you have. apple vets the apps really strictly when you see the news stories that come out saying apple rejected my app and apple shouldn't have rejected my app and that goes to the really strict scrutiny apple puts over apps. so you can pretty much assume
anything in the apple app store isn't malicious. google does less vetting with android apps. if they hear something as malware, which means it's a bad program, they'll take it out. blackberry does pretty good vetting. what you have to really look out for is if you goout the stores. if you're the jailbreak person. >> explain exactly what that means. >> jailbreaking is using your phone to go outside the accepted channels of what you can do with it. that means being able to download iphone apps from outside the apple app store, downloading third-party software that google never heard of on to your android phone. there you're just in the wild west. >> hyper crazy. be aware. if you are going to download an app, what are some red flags something may noting right? >> the big question is what information is this app
collecting and who is it sending it to? for instance, if you have a droid, every time you download an app, it gives you a whole bunch of warnings of things it might do. you can say, this app is collecting my location. okay is this the kind of app that should be collecting my location? what do you think it's going to use the location for? is this an app i expect to make phone calls? so you can go down that list and see, okay, these are all things i expect my app to do. it's okay. now two absolute red flags, no app should ever ask for your social security number and no app should ever ask for your credit card number. the credit card number is stored by the store. the individual apps shouldn't be dealing with that. >> okay. good to know. so with all this information, what are your tips for the best way to about getting apps on your phone? >> the best way obviously is to go to pc.com and look at our 100 best free apps for your phone. but if you go to the official app stores, i do suggest sticking with the official app stores because that's where the most scrutiny and the most
vetting has gone on. and you can be pretty much assured that those apps are safe. >> that's pretty good. i think a lot of people like to know that, if they're using the stores, things should be pretty good. thanks for joining us. >> thanks for having me. and elizabeth cohen is here to explain, while your doctor may hold all the answers, you hold all the power. d. new, delicious shredded morsels and crunchy bites, with real meat, wholesome grains and antioxidants, for strong muscles, vital energy, a healthy immune system, and a real difference in your dog. purina one improved with smartblend. discover what one can do. now available at petsmart.
we're all looking for ways to cut back these days, especially when it comes to medical costs. according to recent estimates, medical problems contributed to more than 60%, 60%, of all bankruptcies in the u.s. now, a new book "the empowered patient" by cnn's very own senior medical correspondent, elizabeth cohen, is helping you
get some of those crazy costs under control. elizabeth is joining us now. she is in atlanta at the cnn center. thanks so much for being here. >> thanks, stephanie. >> let's talk a little bit about this. your book highlights prescription drugs as a particular challenge. we hear so much about that. are prices really, really that high? >> oh, they really are that high. and we rely on prescription drugs. 91% of seniors, 61% of the rest of us rely on prescription drugs. when a drug costs $100 a month or $200 a month or sometimes even more, that's a huge burden. and people think, oh, well, i have prescription drug insurance if you're lucky enough to have it. that usually doesn't take care of everything. you still have a huge deductible and co-pay in many situations and you can still have a really tough time even with insurance. >> okay, so if that's the case, elizabeth, what can people do to help bring down some of these costs? >> well, the good news is that there really are things you can do besides going to canada, which i know has gotten a lot of attention over the years. >> so true. >> but you don't have to hop on a bus. there are simpler ways of
addressing the problem. first of all, there's one i sort of call the yeah, duh, kind of thing because everyone should know this by now, which is you need to ask if there's a generic for the brand name you've been described that. just sort of goes without saying. but you should also ask your pharmacist for help, because there may be an entirely different drug that you can take that will work just as well. when your doctor prescribes a drug, he or she is not thinking about the price, they probably don't even know the price because it's different for everybody, depending upon your insurance. so say to the pharmacist, wow, this is expensive. is there a different drug that could help me? and also consider a prescription assistance plan if you're having trouble paying for your drugs. just google prescription assistance planning and you'll see there are plenty of groups out there that really want to help with you high prescription drug prices. >> all right. and you also talk about medical marketing and that people are going to fall victim to this. what exactly do you mean by that? >> well, what i mean by that is that pharmaceutical companies are smart and they spend lots of money marketing to doctors.
in fact, one study says that they spend $30,000 a year per doctor, meaning per every -- for every doctor in the united states, $30,000, marketing to them. they're not marketing cheap drugs, they're marketting their most expensive products. so that means when you see your doctor, there's a very good chance that they just had lunch with a pharmaceutical rep or just had one in their office. so that drug may be top of mind for them. and so if you're sitting in the waiting room and you see lots of well-dressed, nice, attractive young people with roller suitcases behind them, you can pretty much bet that those people are pharmaceutical reps. nothing wrong with them, but i think you ought to know as an empowered patient, that those people are influencing your doctor or trying to influence your doctor to prescribe the most expensive drugs they have. and studies show that doctors often will do what pharmaceutical reps try to get them to do. so if you see those folks in the waiting room, keep that in